Life and health

The director informs a producer that its license has been terminated and immediately receives a request for the charges to be reviewed in court. Within what maximum number of days must the hearing be held?

30 days

When a disabled dependent child reaches the age limit for coverage, how long does the policyowner have to provide proof of dependency in order for the dependent to remain covered under the policy?

31 days

The sole proprietor of a business makes a total salary of $50,000 a year. This year, his medical expenses have reached a total of 75,000. What amount may the sole proprietor deduct in regards to his medical expenses

50,000

What is the maximum probationary period under a sickness policy

6 months

A person is in the process of becoming permanently licensed as a producer. A temporary producer's license may be issued for a maximum period of

90 days

Which of the following is generally a limited health service included under an LHSO

Dental care services Limited health services include ambulance care services, dental care services, vision care services, pharmaceutical services, clinical laboratory services, and podiatric care services. Limited health care service does not include hospital, medical, surgical or emergency services except when those services are essential to the delivery of the limited health service.

The HMO act of 1973 required employers to offer an HMO plan as an alternative to regular health plans if the company had more than 25 employees. How has it changed since

Employers are no longer forced to offer HMO plans

An insurer has collected $2,000 in commissions on recently issued long-term care policies. However, in the process of policy solicitation, the insurer has violated marketing regulations for long-term care insurance. What is the maximum penalty the insurer

In these situations, insurers are subject to civil penalties of up to 3 times the amount of commissions paid for each policy involved, or up to $10,000 - whichever is greater.

The patient protection and affordable care act includes all of the following provisions except

Individual tax deduction for premiums paid The Act does not offer tax deductions for health insurance premiums. The Act does offer a tax credit, which is different from a tax deduction. All the other provisions are included in the Act.

Which of the following entities has the authority to make changes to an insurance policy?

Insurer's executive officer

Which of the following is true regarding the annuity period

It may last the lifetime of the annuitant

A group Medicare policy is replaced with another from a different insurer. An insured's policy covered a chronic heart condition. How may the new insurer handle this same condition?

It will not regard it as a pre-existing condition

The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as

Legal Actions

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

Level term

A nonresident licensed producer moves to Illinois and wants to obtain a license in this state. Which of the following is true regarding the licensing examination?

No examination will be required

In long term care insurance, what type of care is provided with intermediate care

Occasional nursing or rehabilitative care

A guaranteed renewable health insurance policy allows the

Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class

Which of the following will be included in the policy summary

Premium amounts and surrender values A policy summary must be delivered along with the policy and will provide the producer's name and address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value and death benefit figures for specific policy years.

The insuring clause of a disability policy usually states all of the following except

The method of premium payment

In a life settlement contract, whom does the life settlement broker represent

The owner

Within how many days may a person who is being examined by the Director for nonfinancial business practices request a hearing after receiving the examination report?

10 days

How many accounts must the Illinois Life and health insurance guaranty association maintain

2 accounts: life insurance and health insurance

The director may refuse a licensee's aggregate amount of premiums on controlled business exceeded the aggregate amount of premiums on all other insurance business during

2 calendar years immediately preceding the extension date of the license. An insurance license is not intended to be used to earn commissions on personal insurance needs, or those of family members, or business associates only. An insurance producer license may be refused if the Director has reasonable cause to believe that the aggregate amount of premiums on controlled business exceeded the aggregate amount of premiums on all other insurance business during either 2 calendar years immediately preceding the extension date of the license, or the 12-month period immediately following the issuance or extension of the license.

If an individual covered under a medicare supplement policy becomes eligible for medicaid, how long can benefits and premiums be suspended for the medicare policy

2 years

If an insurer violates state requirements relating to the regulation of long-term care policies, it can be fined up to how many times the amount of any commissions paid?

3

The policy loans provision states that the insurer must advance to the policyowner a sum up to the policy's cash value after the full amount of premiums have been paid for how long?

3 years

A producer receives notice that his license has been terminated. if the producer wants to have the charges reviewed in court, within what time period must the request be made?

30 days

Once the person meets the stringent requiremtnts for disability benefits under social security, how long is the waiting period before any benefits will be paid

5 months

Which of the following long-term care benefits would provide coverage for care for functionally impaired adults on a less than 24-hour basis

Adult Day Care

In a basic expense policy, after the limits of the basic policy are exhausted, the insured must pay what kind of deductable

Corridor

Which of the following are not true regarding basic surgical expense coverage

Coverage is unlimited

if an annuitant dies before annuituzation occurs, what will the beneficiary receive

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

A new employee who meets HIPPA eligibility requirements must be issued health coverage on what basis

Guaranteed

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled

payor benefit

Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years

policy summary

Which of the following would help prevent a universal life policy from lapsing?

target premium

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT

the interest is not taxable since it remains inside the insurance policy

Under standard circumstances, at what point should a Buyer's Guide be distributed to a prospective buyer?

Prior to the initial premium

All policy applications must identify which of the following

Producer who solicited the applicants business

an insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?

Revocable

All of the following long-term care coverages would allow an insured to receive care at home EXCEPT

Skilled care

In order for a firm to maintain its registration as a legal insurance company, what must it do

Submit a biennial fee to the director (every 2 years)

Which of the following entities ultimately decides if an advertisement is complete and truthful

The Director

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

The insurer will pay the full death benefit from the group policy to the beneficairy

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

Those who have been insured under the plan for atleast 5 years

Which provision states that the insurance company must pay medical expense claims immediately

Time of payment claims

Why should the producer personally deliver the policy when the first premium has already been paid?

To help the insured understand all aspects of the contract

If a polic includes a free-look period of at least 10 days, the buyers guide may be delivered to the applicant no later than

With the policy

Can an individual who belongs to a POS plan use an out-of-network physician

Yes, and they may use any preferred physician, even if not part of the HMO

An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued?

adjust the claim benefit to reflect the insureds true age